Lease vs Buy Car Calculator
Enter the car, the lease terms, and how long you keep cars. The calculator totals both paths — including what the bought car is still worth at the end — and names the cheaper one.
| Total cost of leasing | — |
| Total cost of buying | — |
| Car value you own at the end | — |
Why buying usually wins over time
A lease payment rents the car's steepest depreciation years forever — every 3 years you restart at the top of the depreciation curve with a new signing fee. A buyer suffers the same steep early depreciation once, then drives payment-free years while the depreciation curve flattens. On the default numbers, buying wins by thousands over 6 years, and the gap grows every payment-free year after the loan ends.
When leasing legitimately wins
- You genuinely replace cars every 2–3 years anyway — then you are paying for early depreciation either way, and the lease adds convenience.
- Business use: lease payments can be more cleanly deductible (ask an accountant).
- EV tech churn: leasing shifts battery/resale-value risk to the lessor, and some EV tax credits pass through leases more easily.
Lease traps the payment hides
Mileage caps (typically 10–12k/year, 25–30¢ per extra mile), wear-and-tear charges at turn-in, and the disposition fee. A quoted $420/month lease commonly lands at an effective $480+ with fees spread in. Put the true numbers into the calculator, not the ad numbers.
Frequently asked questions
Is it cheaper to lease or buy a car?
Over horizons past ~4 years, buying nearly always costs less because you eventually drive payment-free and keep resale value. Leasing wins on convenience and short horizons, not usually on cost.
Why are lease payments lower than loan payments?
You only pay for the depreciation during the lease plus financing, not the whole car. Lower payment, but you own nothing at the end — the comparison must credit the buyer with resale value, as this calculator does.
What fees do leases add?
Acquisition fee ($500–1,000), disposition fee at turn-in ($300–500), excess mileage (25–30¢/mile), and wear charges. Add them to the signing amount for an honest comparison.
What about leasing then buying out the lease?
Sometimes smart — if the buyout price set in the contract is below market value at lease end, buying it out captures that gap. Compare the buyout price with used-market prices before deciding.
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Last updated: 2026-07-08